Fed running out of reasons to delay rate hike

A worker installs interior trim on a Telsa Model S sedan.
Noah Berger | Bloomberg | Getty Images
A worker installs interior trim on a Telsa Model S sedan.

Inflation is on track to reach the target of the Federal Reserve and other central banks, a Morgan Stanley report said on Monday.

Signs of economic recovery, bottoming in deflation, and central bank accommodation are some of the indicators for reflation in developed markets, analyst Elga Bartsch of Morgan Stanley Research said in the note.